How do one find equity in property?
Eg: Property Estimated Market Value- $283.000-$305,00
Contract price -$250,000.
Needs about- $10,000 in work.
Is this enough info to find out the equity in a property?
Thanks in advance.
It does not matter. There is no deal. No profit with the numbers you have given.
Well, there could be about 10-13K in profit, I think what Arlan was `saying, not enough to mess with.
Was your "market value" the after repair value?
Your cost, purchase price, closing costs (twice to buy and sell) you cost of improvements, your holding costs, financing expenses and taxes need to be looked at with your expected sale price to find the profit.
Equity is not created by buying cheap, saying you made XX$ on a deal, that is guru accounting stuff, equity can only be shown within a year of your buying it by selling it, after a year, you can use its current market value or appraised value, that value less your costs will be the equity gained (or lost). :)
@Bill G. & @Arlan Potter ...thank you both for your response.
Yes, my market value was after repair value.
I wanted to understand how to analyze buying a property with equity.
Do i base that on the value of surrounding proprieties?
Oh my, yes, the secret of getting ahead is getting started and you need to begin by starting with the principles of real estate. Yes, values of real estate for single family homes are primarily found by comparison of similar properties that have sold in that market. But before you get to valuations, there are other basics you need to learn before you can begin valuations and determine markets. There is no step by step process, 1-8, of learning what you really need to know to be successful in real estate, it takes effort and time (like 3 weeks) to understand how and why things are done, including all the guru tactics used today. You could read blogs and forums for a year and still not understand what really goes on, so start with the basics and learn real estate, then learn about real estate deals. :)
@Bill G....thank you!!
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